Helping you build portfolios that are designed to stand the test of time

Picture a framework for portfolio construction that empowers clients to stick with a plan across ever-changing market conditions. With combinations of low-cost passive, strategic beta, and actively managed strategies, our building block approach adapts to fit a range of client risk appetites and likely investor behaviors.

A flexible, cost-efficient asset allocation framework

Our ABC asset allocation framework can help you implement personalized portfolio solutions that are easy to explain to your clients and centered around your desired time and comfort level with managing investments.

Three straightforward approaches

Strategic asset allocation using traditional market cap-weighted equity, fixed income, real assets, and cash exposures for a diversified, low-cost core portfolio

Enhances opportunity set by adding strategic beta, value, growth, and other expanded allocation exposures

Integrates actively managed exposures to provide additional diversification, and/or meet customized client needs

This ABC framework can help deliver a diversified, low-cost core allocation and add degrees of portfolio complexity when it makes sense—all in an easy and scalable way.

*Illustrative efficient frontier. Underlying investments under A (market cap), B (styles and strategic beta) are assumed to be represented by low-cost ETFs or mutual funds, and investments under C (active) are assumed to be represented by actively managed mutual funds with relatively higher operating expenses.

We're here to help you design portfolios for lasting client relationships

To learn more about our ABC asset allocation framework and how you can implement it in your practice, contact your Charles Schwab Investment Management representative.

Insights on portfolio construction

Appreciating simplicity in portfolio construction

Our straightforward, building block framework utilizes a behaviorally based approach to encourage positive investor behavior and help clients stay the course.

Download the white paper >

Fundamentally weighted index strategies: A primer on asset allocation in three core asset classes

Combining fundamentally weighted strategies with cap-weighted strategies may improve a portfolio's risk-return characteristics.

Read more >
More asset allocation insights >
Behavioral finance research >

Factor Investing: It's a jungle out there, but it doesn't have to be

Strategic beta ETFs have created a complex landscape for you to navigate. Using an illustrative tool can help you select the right strategic beta ETFs to integrate into your clients' portfolios.

Read more >

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Important disclosures

Information provided here represents Charles Schwab Investment Management's emerging thoughts on portfolio construction. Nothing should be construed as a recommendation or considered an offer to sell or a solicitation to buy any securities. This information is provided for illustrative purposes only and should not be considered personalized investment advice. You should not buy or sell any investment without first considering whether it is appropriate for your client based on his or her own particular situation.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds and Schwab ETFs. Schwab Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). CSIM and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with SIDCO.